Britannia Industries (₹3,349.65)

At a strong barrier

The stock of Britannia Industries, which is on downtrend since September 2021, invalidated a key base area between ₹3,300 and ₹3,460 in early March. This has turned the near-term trend bearish, and it still remains so. Although it has recovered from the recent low of ₹3,050, made in March, to the current level of ₹3,350, it looks merely a corrective rally. Henceforth, the bears are expected to come back and drag the stock down.

While ₹2,970 is a minor support, the decline can be extended to ₹2,700. So, traders can short the stock now and on a rally to ₹3,460 with an initial stop-loss at ₹3,535. The 21-day moving average coinciding at ₹3,460 makes it a considerable hurdle. When price goes below ₹2,970, alter the stop-loss to ₹3,100. Liquidate all your shorts when the stock touches ₹2,700 as there can be a rebound from this support.

Godrej Agrovet (₹504.95)

Rally gets rejected

The stock of Godrej Agrovet has been falling since August last year after. After marking a low of ₹441 three weeks ago, the stock recovered and last week, it closed at ₹504.95.

But it should be noted that the price band of ₹525-550 is a strong resistance. The attempt to breach this hurdle in the first week of this month did not materialise. Price action hints at a strong rejection. This leaves the chances higher for the stock to resume the downward move in the coming weeks. On the downside, it could fall to ₹430 initially and then to ₹365 in the next three to four months. Given the above factors, one can initiate short positions now and on a rally to ₹525. Place the stop-loss at ₹550. Revise stop-loss to ₹490 when price slips below ₹430. Book profits at ₹365.

Thermax (₹2,229.85)

Breaches a resistance band

The stock of Thermax broke out of the resistance at ₹820 in November 2020 and established an uptrend. However, after reaching ₹2,150 in January this year, the scrip started to show some weakness. But last week, it broke out of the resistance band of ₹2,075-2,150. This gives the bulls the upper hand.

Going forward, the stock is likely to extend the upswing, possibly to ₹2,700 before the end of this year. Note that it may consolidate at around ₹2,500 en route to ₹2,700. But there are chances for the stock to retest the ₹2,075-2,150 band before scaling new highs. So, rather than deploying all the intended money at current level, buy for about half now and then for the remaining at ₹2,100. Stop-loss can be at ₹2,000. Tighten this to ₹2,200 on a decisive break of ₹2,500. Exit at ₹2,700.